What will it take to for us to see the residential real estate market get back on track?
Some people are saying there will be a slow recovery beginning this year, with first-time home buyers leading the way.
There are many reasons why first-time buyers are thinking about buying a home. With the super low and appealing interest rates, the $8,000 tax credit, plus attractive home prices, it is no wonder many are considering buying a home. The average cost of an existing home in 2009 is about $20,000 less than a home listed during the same period in 2008. Plus the fact that first timers do not have to bother with selling an existing home and you have an excellent climate for new buyers. And with the great selection of homes available in Upstate SC today, it could be a great time to buy.
And many member’s of Generation Y have a surprisingly strong sense of optimism about the future, despite cautious near-term sentiment according to a survey by The Concord Group. So what does this survey say?
- 50% say they are likely to purchase a home within the next three years
- 50% say tax credits or lower interest rates would motivate them to purchase a residence sooner
- 70% believe home prices will be higher or at today’s levels in two years
- 62% say wealth creation is a very big advantage of real estate ownership
The survey said that a majority of respondents also say they are:
- Willing to pay a premium to live closer to their job
- Seeking out a larger space for their next residence
- Interested in living near alternative modes of transportation
- Likely to put down less than 20% on their next residential purchase
- Planning to eventually abandon the cities for a life in the suburbs
Helping a first-time buyer requires an understanding of the questions & fears they have. Buying a home is probably the biggest purchase they have ever made, so they are naturally nervous about it. I can understand why you might be nervous when it comes to buying your first home.
But what I do NOT understand is why anyone would want to make what is possibly the largest financial decision of their life with someone experienced to help them…
Like a REALTOR!